Tuesday, June 30, 2015

General Motors Shareholder Lawsuit Dismissed In Delaware

GM First Day as a Public Company Celebration

A group of General Motors shareholders found their lawsuit over the February 2014 recall dismissed in Delaware Monday due to lack of evidence.

The lawsuit — one of four linked to shareholders; the others are in Michigan — alleged GM's directors acted in bad faith over the handling of the February 2014 ignition switch recall affecting 2.66 million vehicles, Detroit Free Press reports.

In his dismissal of the suit, Delaware Chancery Court Judge Sam Glasscock found the board "did not consciously fail to monitor" the company's operations, thus was unable to find "substantial likelihood of personal liability on the part of a majority of the board."

GM praised Glasscock's ruling, especially in light of the various lawsuits still on the table, among other legal actions:

The Delaware Court properly dismissed the complaint because GM's board of directors did its job in exercising oversight over the company. The other shareholder derivative actions pending against the board make the same allegations, so we hope the courts will dismiss those as well.

The Michigan-based lawsuits, two of which are in federal court, were held pending the Delaware decision. Spokesman Jim Cain hopes said decision leads to the trio's dismissal.

(Photo credit: General Motors)

The post General Motors Shareholder Lawsuit Dismissed In Delaware appeared first on The Truth About Cars.



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